Equinor has entered into an agreement with EQT Corporation to acquire an additional non-operated interest in the Northern Marcellus formation in the US, with the transaction valued at $1.25bn.
Through this agreement, Equinor will gain full ownership of EQT’s remaining working interest in Northern Marcellus gas units, primarily operated by Expand Energy. This acquisition is expected to increase Equinor’s cash flow from its international portfolio, providing additional volumes of natural gas produced with low carbon intensity emissions.
Pending finalisation, the acquisition is set to have an economic effect from 31 December 2024. It encompasses the same acreage included in a swap agreement with EQT announced earlier in the year.
Following the transaction, Equinor’s average working interest in the Northern Marcellus asset will rise from 25.7% to 40.7%.
Additionally, the transaction will add approximately 80,000 barrels of oil equivalent per day (boe/d) to Equinor’s U.S. production in the near term.
Equinor Exploration and Production International executive vice president Philippe Mathieu said: “We continue to high-grade Equinor’s international portfolio in line with our strategy, improving robustness by adding more natural gas volumes in a core market where we produce with low break-evens and low intensity upstream emissions.
“We are well positioned in this premium acreage to capitalize on positive long-term demand indicators in the US gas market.”
Equinor’s E&P USA business has generated more than USD 5.5 billion in adjusted operating income after tax since the beginning of 2021.
EQT Corporation ranks among the largest natural gas producers in the US, with operations across Pennsylvania, West Virginia, and Ohio.
Completion of the transaction will be subject to approval by relevant authorities, among other conditions.
